Summer was good and so was autumn. Now as we start into the winter season, we
can hope that the trend continues!
Yankee’s third quarter financial results are now available and we can
announce that we had another good quarter.
Favorable net income resulting from increased net interest income and a
negative provision for credit losses were offset by an increase in expenses. The balance sheet shows that loans were down
from year-end, but volume was up from the previous quarter. The quality of the loan portfolio remains
strong and is expected to remain that way in the foreseeable future. Good members taking advantage of the
continued favorable milk prices, growing conditions and weather continued to be
a primary reason for these good results.
Quarterly net
income for Yankee was $2.4 million, an increase of $167 thousand over the same
period in 2013. The
most
significant factors driving the increase were an increase of $132
thousand in net interest income and a $71 thousand
negative provision for credit losses, as compared to a provision for credit
losses of $83 thousand for the same period in 2013. These were partially offset
by an increase in other
expenses of $168 thousand over the same period in 2013.
For the first nine months of 2014, net income was $6.8
million, an increase of $148 thousand over the same period in 2013. Net interest income increased 6% to $11.0
million. There was a provision for
credit losses of $661 thousand through the third quarter of 2014, as compared
to a provision of $244 during the same period of 2013. Other income increased $374 thousand,
primarily due to an increase in income from patronage refunds from CoBank, ACB
and income from fees for financial services.
Loans held by the Association at September
30, 2014 were $405.0 million, down 2.0% from year end. The loan portfolio continues to be concentrated
in the dairy industry with 50% of loan volume invested in dairy businesses. The second largest concentration is timber, with
14% of loan volume at quarter end.
Credit quality across Yankee’s
loan portfolio remained strong
during the quarter and well within
the
risk-bearing capacity of the Association.
At quarter-end 0.7%
of the Association loans were classified as nonperforming, 0.1% improved from the previous quarter and from year end. There were no loan charge-offs and no recoveries in the quarter. The Association’s
capital position remains
strong.
Click here for the
full quarterly Report to Shareholders.
